I make around $5,000 a month on average and im 18 years of age. I dont know much about the above topic. But I don't like just blowing my money. However, I dont want to give someone money with the chances of losing it. I was told that when I invest in stocks sometimes it could go down and I can lose. I know nothing at all regarding the above subjects and if I give someone money for sure - I want money back GUARANTEED!

Can someone help me, point me in the right direction? I would really appreciate it. Please help if only you know what you are talking about.

In my past life I was an executive with one of the worlds largest
financial institutions. My title was vice-president of investments
for wealthy individuals and small institutions. Their are many
factors to take into account when planning and investing.
Japan and Argentina were both much wealthier countries than
the U.S. in the recent past. Japan has been in a bear or down
trending market since 1989. The demographics of Japan are
terrible. The U.S. is facing similar problems starting in 2008.
It is very difficult to paddle up stream against the current.
People will be able to make money on stocks that are growing
in an over all bad market, but a ton of work.
Buying put options on stocks is a way
to make money on stocks; when they go down. It is an advanced
strategy and not for a beginner.
These are going to be tough times. The key is to lower your
lifestyle; be happy not losing money in an insured account.
Dr. Martin Weiss is execellent. He has good bear market
short selling ideas. They also rate insurance companies.
Finally, to make money in a bear market is a part time job.
You would have to make a big time commitment educating yourself. The financial institutions Merrill Lynch, Pru, Schwab
etc.. are all about getting your business. You must really
ultimately rely on yourself. Playing safe is smart. Your cash will
grow just sitting still as others lose big time.

I would recommend that you look at getting a tri-plex or quad-plex building (a single building with 3 or 4 apartments within it). They are great tax write-offs (which will shelter your other income, from having to pay so much taxes), once purchased they pay for themselves each month and they build equity (worth). Each month the equity builds, as your Net Worth grows. They are not as easy to sell as stocks, but then they dont de-value the same either. I dont sell mine, why should I? each money they make more money, and they shelter the rest of my income from taxes.

If your motivated to do good for the cause; having a 'safe house' available for people to cool-off is a need. Having various apartments makes that available.

If you want an early retirement; having more sources of income is handy.

Buildings that I have gotten, usually cost me between $5,000 and $8,000 closing costs during escrow.

Realestate is better than the stock market. It takes about
20 appraisals to find a bargain on average. Realestate is
very time consuming. It would become a part time job. Finding
good tenents is a must. They will be no free lunchs in an
economy that is contracting. Having done thousands of
financial plans for individuals. Realestate is over valued today.
If you buy? It should be for the long term. You could take a hit
100% or 200% loss of capital in a bear market. Sorry to be
a downer. Knowing the downside is always a must in making
a rational decision. Do you have solid employment and disability
insurance, if you get sick. A forced sale could be a big hit

Hmm, I dont know, never done 20, I dont remember ever doing more than one.

Usually the bank will want their appraisor to look it over. If you use FHA loan, you need their private appraisor (1 week delay). If you use VA, you need their's (1 month delay).

"Realestate is very time consuming."

I suppose so, most of the time that I have been collecting apartment buildings, I have been going to sea on submarines. so I left them with the wife to run, or with a 'manager'.

"It would become a part time job. Finding good tenents is a must."

There are tricks to this.

I rent for 80% of the neighborhood average. It keeps me full. they talk with their friends and they each know that my rent is cheaper. So they generally dont leave.

When I want someone to leave, file the papers and then offer them 2 month's rent (in cash) to be out before the end of the week. they will be gone.

"They will be no free lunchs in an economy that is contracting. Having done thousands of financial plans for individuals. Realestate is over valued today. If you buy? It should be for the long term. You could take a hit 100% or 200% loss of capital in a bear market. Sorry to be a downer. Knowing the downside is always a must in making a rational decision. Do you have solid employment and disability insurance, if you get sick. A forced sale could be a big hit"

Okay if you say so, (contracting?) I really dont know that much about it. a Tri-plex or quad-plex will sale for 60% of the cost for the same sized building if it were a single family home. Rental property is always cheaper. It is a business, so the banks will be concerned with the rental income. It is also a home, so you can get 100% financing, with zero down; called a "First-time Home-owners loan". If one bank says no, walk out, they dont need your business.

Whether real estate is over-valued or not, it does not make that much difference, since a bank will carry it, and renters will pay you to make the mortgage payments. If it is not MY money changing hands, then I dont care about the price. the only difference would be in the closing costs, and they dont usually go over 5 to 8 grand.

To me, I want a building that will bring in twice the mortgage payment each month. It must have one nice apartment for my family to live in, while we are there. the escrow account insurance policy must be for the replacement value of the building (not just to pay off the mortgage principal) and it must name ME as the beneficiary (many banks dont like that part, they want to be the beneficiary). And if it needs any kind of big repairs, it must be within a HUD desiggnated 'zone'. (because then so long as you agree to rent to 'low' income people, they will grant you money to re-build anything the building needs.)

Anyone here live in Maine? I was thinking of moving to Maine next year and getting a building up there. Any ideas of a good place to be? Maybe by the coast (I do like sailing), but close to ski slopes would be good for in the winter too.

I will cover two topics appraisals and the over valued realestate
market.

1) An appraisal- you carefully and diligently analyze
a) structural integrity
b) maintaince to get to code
c) relative value to similar properties

must have access to the realestate brokers computer
network in your area

must have some knowledge of construction estimating

2) Realestate Austria vs. US
a) Austria 20%+ equity for small investor
b) in the US as little as 5%
c) Fed Res in US flooding system with money

Banks need 20% equity in a realestate loan or risk
huge losses. US banks have been making bad loans.
Supply and Demand
Money has no intrinsic value
Fannie Mae and Freddie Mac get free money
0% equity loans available from Freddie and Fannie
Money center banks get free money
0% equity loans available to corp customers

Our banking system is not on a weak fundation. It has
no foundation. Look to Argentina to see a possible
outcome for our banks. They are our banks abroad.
Farewell, Brad

P.S. A. Gary Shilling is the Bush family advisor was my
role model. He saw the stock bubble far in advance,
and today looks to the realestate bubble. He has
a newsletter Insight. Looking at the back issues it
is incredible how accurate them have been.www.agaryshilling.com

"1 An appraisal- you carefully and diligently analyze
a) structural integrity
b) maintaince to get to code
c) relative value to similar properties"

We have hired independent appraisors to do these for us. they have been cheap and wonderful tools for negotiating purchase prices

" 2) Realestate Austria vs. US
a) Austria 20%+ equity for small investor
b) in the US as little as 5%
c) Fed Res in US flooding system with money"

I am not a banker, so I dont know that I should really care about this.

" Banks need 20% equity in a realestate loan or risk
huge losses. US banks have been making bad loans.
Supply and Demand
Money has no intrinsic value
Fannie Mae and Freddie Mac get free money
0% equity loans available from Freddie and Fannie
Money center banks get free money
0% equity loans available to corp customers"

Again, I am not envoled to any extent that would make me care. I collect apartment buildings that I buy for zero down. Banks fold, that is what they do. I dont care. I just continue to collect buildings that make money.

"P.S. A. Gary Shilling is the Bush family advisor was my
role model. He saw the stock bubble far in advance,
and today looks to the realestate bubble. He has
a newsletter Insight. Looking at the back issues it
is incredible how accurate them have been."

Wonderful, those I think that most affluent people would generally agree, that to stay away from the stock market is wise. Buying and selling real estate in the hopes of making profit is again similar to gambling. Buying somethng that makes a profit, and holding it is simply, money in my pocket each month.

Thanks, I think I am going to get into real estate. I heard it could be easy, but could be hard. Would I have to actually buy the property before I lease it out!? If you can explain all this in more detail I would appreciate it..

As for how I make my $$, thats my business. But It's not illegal. :-) Resources in the business world should be kept a secret and should not be revealed. I work both on and off the net doing the same thing..